Deckers cuts annual sales outlook to $5.700–5.725 billion, raises earnings forecast

Key Facts

Deckers Brands cut its fiscal 2027 net sales forecast to between $5.700 billion and $5.725 billion, according to its earnings release issued on October 22, 2026, while raising its annual earnings-per-share outlook. The company had forecast annual sales of between $5.86 billion and $5.91 billion in its July update before lowering the range in its latest announcement. It raised its full-year diluted earnings-per-share forecast to between $7.80 and $7.95 despite cutting its sales target. The new earnings range compares with previous estimates of between $7.35 and $7.50 per share, according to the July earnings release. The company reported net sales of $1.481 billion for the second quarter of fiscal 2027, which ended on September 30, 2026.

Quarterly diluted earnings per share rose to $2.31 from $1.82 in the year-earlier period, according to the company's statement. Quarterly earnings included a net benefit from tariff refunds that added about $0.28 per share after tax. Gross margin rose to 60.5% from 56.2% in the year-earlier period, alongside the improvement in reported earnings per share. The chief executive said "expense controls" were among the reasons earnings exceeded management's expectations, alongside the benefit from tariff refunds. The improvement in quarterly earnings follows a previous quarter in which the company reported operating income of $155.3 million, down from $165.3 million in the year-earlier period.

In sales details, comparable direct-to-consumer sales fell 6.4% year on year in the reported quarter, according to Deckers. The same channel had posted comparable sales growth of 6.8% in the first quarter of fiscal 2027 before contracting in the second quarter. HOKA sales continued to grow, rising 6.8% year on year, compared with growth of 7.7% in the previous quarter. HOKA sales in that previous quarter totaled $703.5 million, according to the July earnings release. UGG sales grew 3.5% year on year in the reported quarter, following a 4.9% increase to $278.0 million in the previous quarter.

Ahead of the announcement, Deckers had reported no outstanding borrowings in its previous quarterly disclosure. Before the latest results, Williams Trading cut its price target for the company's shares to $135 from $160, according to a report published by Investing.com in mid-October. The firm maintained its buy recommendation despite lowering the price target. Before the announcement, it had expected fiscal 2027 annual revenue guidance to remain unchanged, according to the same report. Deckers' subsequent cut to its annual sales range ran counter to the firm's expectation that the guidance would be maintained.

BMO had attributed its cautious stance on the company in earlier coverage in September to a weak demand environment for athletic footwear, according to Investing.com. It also cited increased promotional activity among Deckers' competitors in athletic footwear as a reason for that stance. For the second half of the fiscal year, Stifel identified the pace of UGG sell-through to consumers as one of the company's key tests in a report published in October. It also listed reorders for the brand's products amid warm weather among those tests, according to the report cited by Investing.com before the earnings announcement. Deckers scheduled its earnings call for October 22, 2026, at 4:30 p.m. Eastern Daylight Time, according to its investor relations website.